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Foreword
This report is written for the course Knowledge ring at the Avans in s-Hertogenbosch by fourth year students of the minor innovation and creativity. The context of this conducted research is based on innovation. The goal of this rapport is to look into how to create an innovation culture. This report is written for the people who are interested in innovation, creating the culture, manage innovation and failures. We want to refer to chapter 2 when it comes to general information about the denition of an innovation culture. Chapter 3 en 4 describes the innovation as a success and a failure. In chapter 5 you can nd the management of innovation and nally you can nd how failures changes the world. We want to show thanks to Kees van Kaam for being a great help in structuring the research. s-Hertogenbosch, 18 December 2013 M. Knippels M. Lagerweij B.A.J. van Wezenbeek
Summary
The research is conducted because nowadays innovation is an indispensable factor within society. Creating an innovation culture within a company is necisary to stay up to date. We have noticed that people easily give up on innovating because the concept turned out a to be a failure or the struggles that comes with it. To look on the positive side our research looked into in which way the failures changes into success. Should failures be accepted within an organisation to create the culture of innovation? To nd out if a failure should be excepted in an innovation culture we conducted research in all possible ways. We started of with desk research and also conducted a little eld research. After formulating the main question we looked into the sub questions to make sure that they would lead us to the right answer. During the following weeks we noticed that we had to make little changes to certain chapters because the formulated sub question would not give us the answer that we wanted to have. While writing what a successful innovation is we noticed that while answering that answer we already answered the question : how to manage an innovation. Therefore we decided to look into what a company or a person should have to be innovative. The answer to the main question is as followed: Engage your failures has to do with all the other 4 things of the innovation culture circle. That is why failures should be accepted to create a culture of innovation. Innovation brings a lot of failures within an organisation. To make innovation as your identity you should accept these failures because else you are not innovating at all. While accepting failures within your organisation, you actually encouraging innovation by embrace the mistakes which are made. Besides failures are the result of experimenting and invest in ideas and it is a way to discover what is not working within you idea. So nally failures let you think of new perspectives and possibilities of problems, ideas and solutions and that creates the culture of innovation within an organisation.
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Table of content
Foreword Summary Introduction Chapter 1 1.1 The concept of the innovation culture Dening innovation culture 1.1.1 What is innovation? 1.1.2 What is a culture? 1.1.3 What is an innovation culture? What is mandatory for creating an innovation culture 3 Conclusion Innovation as a failure Dening failure? The key values that leads innovation to a failure? The Importance of failures Respond against failures Conclusion Innovation as a success Dening succes The key values that leads innovation to a succes Conclusion Manage innovation Innovation leadership How to manage innovation? Conclusion The fall over Case study The key values that leads failures to a success Conclusion I II V 1 2 2 2 2 4 5 6 6 6 7 7 8 9 12 13 14 15 16 17 18 19 19
1.2 1.3 Chapter 2 2.1 2.2 2.3 2.4 2.5 Chapter 3 3.1 3.2 3.3 Chapter 4 4.1 4.2 4.3 Chapter 5 5.1 5.2 5.3
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Table of content
Chapter 6 Literature Extra pages Conclusion 20 23 25
IV
Introduction
For the course knowledge ring we got the assignment to look into creating an innovation culture. The research is conducted because nowadays innovation is an indispensable factor within the society. Creating an innovation culture within a company is very useful to stay up to date. We have noticed that people easily give up on innovating because the concept turned out a to be a failure or the struggles that comes with it. To look on the positive side our research looked into in which way the failures changes into success. The main scope of the research is related to the failures and their successes. We believe if you accept and learn from your mistakes you can create the culture of innovation! The main question which is elaborated reads as follows: Should failures be accepted within an organisation to create the culture of innovation? The main purpose of this research is to create a new perspective according to failures within creating an innovation culture. This study will position innovation failures as a positive benchmark of an innovation culture. By answering the main question we show
The only real failure is the failure to try, and the measure of success is how we cope with disappointment.
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Chapter 1
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Figure 1
Creating an innovation culture dently needs 5 concepts: Innovation as an identity: In most of the companies innovation is a huge underestimated concept. Innovation should be your number one drive if you want to create an innovation culture. Accepting innovation as an identity creates a personal environment where innovation can develop within in your way of thinking. Encourage innovation: There is no way that innovation is done by one person. Innovation is a process where people has to brainstorm, come up with new ideas and be encouraged by the management team. For external and internal innovation, employees are able to innovate if this is encouraged within a company. By placing an idea box for example and encourage their ideas you create a culture of innovation. Experiment with ideas: Innovation needs time to be accepted and inltrated heir outcomes. Invest in ideas: As we look more to the management departments, there should be an reward system that invest in the ideas that are submitted. You create condence, you show that you listen and appreciate the eort of the employees. Engage failures: The most common problem in innovative companies is the acceptance of failures. Engaging failures is the most important feature of creating the culture of innovation. Failures are the best way to improve and learn from your ideas.
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Innovation doesnt just happen. It requires a culture that fosters an open exchange of ideas among employees, management, customers and other stakeholders. The build network
1.3 Conclusion
Innovation is mostly an underestimated subject within an organisation. To create an innovation culture there is dened the denition of innovation and culture. If you combine these you have the denition of an innovation culture. According to paragraph 1.1 is an innovation a culture in an atmosphere where employees can be open , innovative and creative within the organisation without being blocked in their way of thinking. It is a culture where employees can share and take care of their idea. It is a culture where every attempt for innovation is embraced and accepted. The most important thing is accept and learn from your failures. In the following chapters you can nd information about what exactly triggers an innovation to fail? When is an innovation a success? How to manage innovation and what exactly brings a failure to a success?
- Thomas Edison
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Innovation as a failure
I can accept failure, everyone fails at something, but I cant accept not trying -Michael Jordan
Almost everyone tries to avoid failure. The focus is on not failing, instead of aiming for success. This makes us selectively editing out miscalculations or mistakes. Everyone will remember this phrase: Failure is not an option, by NASA ight controller Jerry C. Bostick of the Apollo 13 crew. (Estrem)
Every failure, every adversity and every headache, carries with it the seed of an equivalent or a great benet - Napoleon Hill
2.5 Conclusion
An innovation is a failure when the outcome of a research is dierent as expected. Failure however, is good for innovation. Each failure means there is new knowledge of how things should not been done and this gives opportunity to proceed on great innovations. Dont be afraid of failure, without failures we would not have been such a developed society as we are nowadays.
3.
Innovation as a success
It basically comes down to a way of thinking. If you as a major company want to stay above the competition you have to come up with a disruptive innovations. Unfortunately no one will tell you how it works because data is only available about the past however what we do know is that the only way you can look into the future is by using a good theory. (More, 2011)
According to research a lot of innovations fail because it does not meet the customers needs. The wrong pricing and time to market are one of the most important reasons why innovations fail. Might this also be the key to a successful innovation? The importance of innovation grew enormously in the last few years during the crisis. We have to do the same things, care about the same stu but have to aord it with less money. Apples IPhone 5s feels, looks operate like an iPhone 5S, it does give you the real IPhone experience however this IPhone is more aordable which would be a great example for a disruptive innovation. The need of innovations is clear but having only an innovative concept is not enough. You have to successfully implement it on the market; research shows that this is also a reason why some innovations fail. Firstly we already know that 34% of the innovations fail because that the innovation does not meet the customers demand, secondly 35% of innovations fails because the pricing is wrong. You might think that it is easier to solve since these two are based on customer perception. Just communicate with your customer!
The product or service is priced incorrectly Failed to meet customer needs The product or service is late to market We encountered supply chain issues Customers find no new/unique value proposition We forecasted incorrectly We encountered regulatory or quality issues Our product or service cost was too high Poor trade promotion execution Other
Figure 2 Why innovation fails
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3.2.2
Accenture is known for their awards of innovations therefore we are going to use their top three winners and see why their innovation won this awards, what is so innovative about them and why do they think that this innovation is going to be successful? 1.LUXeXel (LXL) created a 3d-print method based on uent dynamics. This method can guarantee you that every object will become a smooth surface that does not need any post-processing. Therefore the process can print LED lenses for LED lighting. Recently LUCeXel printed worlds rst glasses frame as well as glasses. 2.Wingssprayer produces and markets eective vegetation protection which saves time and money for agriculture without entrust the human or environment with poison. The Wingssprayer has a technique that reduces 99% of the chemical elements to air. This has been the best environment saving technique of the world. 3.Taalvoutjes uses humour to teach the Dutch language. Everyone makes spelling- or commu nication mistakes with sometimes hilarious outcomes. By using a Facebook page and a website they are helping people to get more awareness about common spelling mistakes and expand the awareness of the Dutch language. (Accenture, 2012) After reading these case studies there are a few things that caught our attention: 1. Person behind the innovation: most of the times it is someone who would like to change the world in even the smallest ways. 2. Most innovations are driven by something that is bothering one single person, a group of people or a company. 3. The goal should be clear, why do you want to innovate? 4. The initiators have passionate and devoted personalities. 5. Research is an interesting matter; some innovations are mainly driven on conducted research like the LUCeXel and Taalvoutjes are driven by a persons believe. These are innovative concepts that give us insight in how an innovation concept starts but as mentioned before you might have a great concept but when it is not successfully implemented, it is still not a successful innovation. Unfortunately no one can tell you how it works because data is only available about the past. However what we do know is that the only way you can look into the future is by using a great guidelines:
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1. Strong vision: create a strong vision, what do you want to innovate, what are your goals and how do you want to be innovative? 2. Commitment: to be successful you have to show full commitment, everyone who is joining the innovation should be on-board for this journey. Committing to making an innovation is the key element of your daily business. 3. Create momentum and still a sense of urgency. This journey is all about change. If you do what you always did, you will get what you always got. You have to embrace the change, you need to keep the momentum going and once you got it, still keep up the speed of change. 4. Go for a full innovation upgrade: The great majority of companies have cut out the investment in innovation during the nancial crisis, but as mentioned earlier Innovation might be the answer to get out of your nancial crisis. Companies need to upgrade their innovation mind-set and skills across the board. Keep developing, keep researching and nd the gap. Do not only see the top management as the key to your innovation but start from bottom up. Innovation trainings for everyone are more important than ever. 5. People rst, process next, than ideas: You need to nd a way to combine a strong portfolio selection and management processes for project while still developing the people pool. When you focus too much on ideas and projects downplaying the role of identifying and developing the right people for the right projects on the right time. You need to nd a proper balance but put people rst. 6. Communication: Developing an innovation culture is very much about perception. If you think that your company is innovative you will build further on this. Get insights from people insight and outside the company. Find the pockets of strong innovation eorts within the organization, (values) share this with everyone and build an even stronger foundation based on this values continuously create strong stories to develop the perception that you are innovative. 7. Be open, experiment and learn from your failures. As mentioned in chapter 2 embrace failures. The future of innovation is open and global. Share what you believe in, be prepared to experiment and change how you thought of innovation. Embrace failures and learn from them to make sure that you do not continue to repeat them. (Lindegaard, 2013)
3.3 Conclusion
To answer the question what is a successful innovation and how do you create one I would like to look back at the denition of innovation: An innovation is a new idea, process, product or service that is successfully generated, accepted and implemented. An innovation always completes all the steps in this process. It shows that innovation is a process, which diers for every company. The bottom line might be that there is no set recipe to a successful innovation but there theories! You have to make sure that you as a person or an organisation are open, willing to increase your knowledge and be determined to make it work.
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Manage innovation
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After nding out what an innovation is and how you can create an innovation, the questions we asked ourselves are, Can everyone be innovative? And if you are? What is the best way to manage this? In chapter ve we would like to show you what it takes to be or become a true innovator and how you could mange the innovation.
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Function 6: Resource Mobilisation Resources, both nancial and human capital, are necessary as a basic input to all the activities within the Innovation System. Function 7: Creation of legitimacy / counteract resistance to change In order to develop well, a new product needs to settle in the consumers and competitors minds. Parties with vested interest will oppose, when they do so be prepared! (Ossebaard, 2012)
4.3 Conclusion
Innovations do not come with a manual, you try as much as you can and at some point you will have an successful innovation. This chapter showed us that you could learn how to become innovative by teaching yourself ve skills associating, questioning, observing, experimenting and networking. Furthermore it turns our that there are no set ways how to manage an innovation but there are seven functions to look out for!
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5.
Failure to success
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How is it possible that failures become a success? and what are the key values that let this happen? In this chapter we describe some case studies and describe the most important values that makes the fall over from a failure to a success.
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5.2 What are the key values of a failure that leads to success?
There are some main values that can leads a failure to a success. The following values are the most common ones while doing the research: Accept Embrace Serendipity Accept & Embrace failures as a way of success. Accepting a failure is a way of looking in another direction of your innovation. With a failure you discovered something what is not working at all. Reframe your vision upon the innovation let you rethink of the idea or the process. Serendipity is a not common concept within the innovation subject. Lets take a closer look to the concept of serendipity. The denition according to (Rouse, 2006) is: Serendipity is the act of nding something valuable or delightful when you are not looking for it. In information technology, serendipity often plays a part in the recognition of a new product need or in solving a design problem. For example web surng can be an occasion for serendipity since you sometimes come across a valuable or interesting site when you are looking for something else. So what serendipity actually means is that you nd your result when you are not searching for it. The concept aligns with accepting and embracing your failures. If you are not able to accept your failures and embrace them you will never nd the solution behind it. Serendipity is an unexpected concept which comes up when you accept your failures as a solution to your success. We take Sir Alexander Fleming as an example of serendipity. He was doing research with the inuenza virus. After he came back of his two week holiday he found out by surprise that uy white mass had an eect against gram-positive bacteria. He discovered Penicillin by total surprise, he was trying to nd more information about inuenza and discovered one of the most used medicine nowadays. The conclusion will give the last insight in the most important value of success stories within innovation. (Endocrine Today, 2013)
5.3 Conclusion
The main value for changing failures into success stories are a few small things. Its easy to remember. When something doesnt go as expected there can be done two things. Accept the failure and embrace that u discovered a way which doesnt work. Those who accept their failure will never be innovative. Those who dont accept the failure and proceed trying will be innovative. They will make the failure into a success. And if it leads to no real innovation, research at least gave insight of what didnt work for future research which are both success stories. Finally the concept of serendipity is needed for the fall over of failures. With other words, you need a little luck to discover an innovation.
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6.
Conclusion
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The conclusion answer the main question and provides new insights into the concept of failures. The main question is as followed: Should failures be accepted within an organisation to create the culture of innovation? To answer the question we elaborated some conclusions of each chapter. To give an easy summary of the small conclusions we wrote down the most important information that is needed to answer the main question. Chapter 1: Innovation is mostly an underestimated subject within an organisation. According to paragraph 1.1 an innovation a culture is dened as an atmosphere where employees can be open , innovative and creative within the organisation without being blocked in their way of thinking. It is a culture where employees can share and take care of their idea. It is a culture where every attempt for innovation is embraced and accepted. The most important thing is accept and learn from your failures. To create the culture of innovation you need denitely need the 5 mandatory concepts within the circle of the innovation culture. Chapter 2: A innovation is a failure when the outcome of a research is dierent as expected. Failure however, is good for innovation. Each failure means there is new knowledge of how things should not been done and this gives opportunity to proceed on great innovations. Dont be afraid of failure, without failures we would not have been such a developed society as we are nowadays. Chapter 3: An innovation is a new idea, process, product or service that is successfully generated, accepted and implemented. An innovation always completes all the steps in this process. It shows that innovation is a process, which diers for every company. The bottom line might be that there is no set recipe to a successful innovation but there theories! You have to make sure that you as a person or an organisation are open, willing to increase your knowledge and be determined to make it work. Chapter 4: Innovations do not come with a manual, you try as much as you can and at some point you will have an successful innovation. This chapter showed us that you could learn how to become innovative by teaching yourself ve skills associating, questioning, observing, experimenting and networking. Furthermore it turns our that there are no set ways how to manage an innovation but there are seven functions to look out for!
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Chapter 5: The main value for changing failures into success stories are a few small things. Its easy to remember. When something doesnt go as expected just accept the failure and embrace that u discovered a way which doesnt work. Those who accept their failure will never be innovative. Those who dont accept the failure and proceed trying will be innovative. They will make the failure into a success. And if it leads to no real innovation, research at least gave insight of what didnt work for future research which are both success stories. Finally the concept of serendipity is needed for the fall over of failures. In other words, you need a little luck to discover an innovation. The answer to the main question is yes, failures should be accepted within an organisation to create the culture of innovation. To create the culture of innovation you need the 5 things of the circle to create an innovation culture. ( chapter 1 ) The 5 concepts are: Innovation as an identity Encourage innovation Experiment with ideas Invest in ideas Engage failures
Engage your failures has to do with all the other 4 things of the innovation culture circle. That is why failures should be accepted to create a culture of innovation. Innovation brings a lot of failures within an organisation. To make innovation as your identity you should accept these failures because else you are not innovating at all. While accepting failures within your organisation, you actually encouraging innovation by embrace the mistakes which are made. Besides failures are the result of experimenting and invest in ideas and it is a way to discover what is not working within you idea. So nally failures let you think of new perspectives and possibilities of problems, ideas and solutions and that creates the culture of innovation within an organisation.
The truth is, there is a very ne line between failure and inspiration. When you have the ability to look at a situation from a dierent perspective, ask a dierent question there is no telling what sort of amazing discoveries you might make! (Mckinney, 2013) - Phil Mckinney
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Literature
Accenture. (2013). Accenture innovation. Opgeroepen op december 2013, van http://www.accenture.com/Microsites/innovationawards/Pages/index.aspx Brand Failures. (2013, December 16). Brand Idea Failures: RJ Reynolds smokeless cigarettes. Opgehaald van blogspot.nl: http://brandfailures.blogspot.nl/2006/11/brand-idea-failures-rj-reynolds.html Business.gov.au. (sd). What is innovation? . Opgeroepen op November 25, 2013, van http://www.business.gov.au/BusinessTopics/Innovation/Pages/Whatisinnovation.aspx Encompass. (2013). What does innovation mean? Opgeroepen op November 25, 2013, van http://www.encompass-scotland.co.uk/innovation-in-your-business/innovation.html Endocrine Today. (2013, December 16). Penicillin: An accidental discovery changed the course of medicine. Opgehaald van healio.com: http://www.healio.com/endocrinology/news/print/endocrine-today/%7B15afd2a1-2084-4ca6-a4e6-7185f5c4cfb0%7D/penicillin-an-accidental-discovery-changed-t he-course-of-medicine Estrem, P. (sd). Why Failure Is Good for Success. Opgeroepen op November 26, 2013, van success.com: http://www.success.com/article/why-failure-is-good-for-success Iriss. (2012, May). Creating the culture of innovation. Opgeroepen op November 29, 2013, van http://www.iriss.org.uk/sites/default/les/creating_a_culture_of_innovation_report_nal.pdf Jerey H. Dyer, H. B. (2009, december). The innovaters DNA. Opgeroepen op December 2013, van HBR: http://hbr.org/2009/12/the-innovators-dna Koray, D. (2013, 10 July). Why Failure is Good For You. Opgehaald van slideshare.net: http://www.slideshare.net/denniskoray/road-to-success-why-failure-is-good-for-you Lindegaard, S. (2013, September). 7 Steps for Building a Top 100 Innovation Company. Opgeroepen op December 2013, van http://www.innovationexcellence.com/blog/2013/09/07/7-steps-for-building-a-top-100-innovation-company/#sthash.6dFvlPj0. dpuf Management, Y. S. (2009). How do you build a culture of innovation. Opgeroepen op december 8, 2013, van http://insights.som.yale.edu/insights/how-do-you-build-culture-innovation Mckinney, P. (2013, October). Unintended Consequences: 5 Innovation Failures That Changed the World. Opgeroepen op December 2013, van http://philmckinney.com/archives/2013/10/unintended-consequences-5-innovation-failures-that-changed-the-world.html More, R. (2011, August). What is succes in innovation? Opgeroepen op December 2013, van http://iveybusinessjournal.com/topics/innovation/what-is-success-in-innovation#.UpUFo6XsDgJ
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Literature
Network, T. B. (2013, October 11). Driving a Culture of Innovation. Opgeroepen op 12 8, 2013, van http://thebuildnetwork.com/leadership/innovation-culture/ O'neill, D. (2006, May). What is a culture? Opgeroepen op November 29, 2013, van http://anthro.palomar.edu/culture/culture_1.htm Ossebaard, M. H. (2012). De innovatiemotor. Koninklijke van Gorcum, Assen. Rapp, S. (sd). Why Success Always Starts With Failure. Opgeroepen op 12 11, 2013, van http://99u.com/articles/7072/why-success-always-starts-with-failure Rouse, M. (2006, December). Denition serendipity. Opgeroepen op December 2013, van http://whatis.techtarget.com/denition/serendipity Talha, S. (2010, March). Importance Of Innovation Management in Organizations. Opgeroepen op December 2013, van http://www.scribd.com/doc/27711762/Importance-Of-Innovation-Management-in-Organizations Wiki, the free encyclopedia. (2013, September 18). Failure. Opgeroepen op November 26, 2013, van wikipedia.org: http://en.wikipedia.org/wiki/Failure Wikipedia. (2013, December 16). New Coke. Opgehaald van wikipedia.org: http://en.wikipedia.org/wiki/New_Coke Wojcicki, S. (2011, July). 8 pillars of innovation. Opgeroepen op December 8, 2013, van http://www.google.com/think/articles/8-pillars-of-innovation.html Zimmermann, K. A. (2012, July 9). Denition of culture. Opgeroepen op November 29, 2013, van http://www.livescience.com/21478-what-is-culture-denition-of-culture.html
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Extra pages
Research plan description
Introduction The Avans university in S-Hertogenbosch challenged us to brainstorm about creating an innovation culture. After a lot of brainstorms our main focus was to see how an innovation culture can be created in a company? But how do you actually start an innovation? Can everyone be innovative? And what actually is an innovation? And why are there only a few? We conducted a little research into the innovations in the market and noticed that most companies fail a lot of innovation concepts and that only a few make it to a successful one. Therefor our main question is: Should failures be accepted within an innovation culture? Nowadays innovations are necessary to even excist, in this open and globalized world. In this study we want to embrace the fast pace of innovation and see when an innovation is a failure and what can you do to learn from them? The main purpose of this research is to get a better, wider and detailed view of an innovation culture. Structure of the Sub questions Chapter 1. Concept of the innovation culture 1.1. Denition of an innovation culture 1.2. What is a culture? 1.3. Conclusion Chapter 2. Innovation as a failure 2.1 Denition of a failure 2.2. The key values that lead to a failure of innovation 2.3. The importance of failures 2.4. Responds to failures 2.5. Conclusion Chapter 3. An successful innovation 3.1. Dening a success 3.2. The key values that lead to a successful innovation 3.3 Conclusion Chapter 4. Manage an innovation 4.1. Innovation DNA 4.2. Chapter 5. The fall over 5.1. Case studies 5.2. The key values that lead failures to a success Chapter 6. Conclusion
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6.3. Method To nd out if a failure should be excepted in an innovation culture we conducted research in all possible ways. We started of with desk research and also conducted a little eld research. After formulating the main question we looked into the sub questions to make sure that they would lead us to the right answer. During the following weeks we noticed that we had to make little changes to certain chapters because the formulated sub question would not give us the answer that we wanted to have. While writing what a successful innovation is we noticed that while answering that answer we already answered the question : how to manage an innovation. Therefore we decided to look into what a company or a person should have to be innovative. We also noticed that there are a lot of denitions of innovations out there, it is a really broad topic therefore a lot of important people made suggestions for denition. Due to the fact that we has a course in innovation we used the denition An innovation is a new idea, process, product or service that is successfully generated, accepted and implemented. An innovation always completes all the steps in this process. However, as you might have noticed, we also took other insights in mind to come to the right conclusion. After answering the sub questions we noticed we came to a successful conclusion, however we did noticed that we could add some extra information in how to have a successful innovation and decided to look more into case studies, successful and the not so successful ones. It turns out that there is a lot of information about successful innovations but not so much about failures. Never the less we had a bulk of information, new insights and experiences which we eventually scooped down to the most relevant. The structure helped us to make sure that we looked at it from all possible angles to conclude the main question: Should a failure be accepted in an innovation culture? Results Most probably you have already nd all the results but just to be sure we summed them up. The most relevant results are: What an innovation culture is. How can you create an innovation culture. The core of a failure. What you can do to prevent failures When an innovation successful is What are the guidelines to a successful innovation What do you have to do to be or become innovative
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